I’m Professor and Chair of the Department of Economics at LIU Post in New York. I’ve published several articles in professional journals and magazines, including Barron’s, The New York Times, Japan Times, Newsday, Plain Dealer, Edge Singapore, European Management Review, Management International Review, and Journal of Risk and Insurance. I’ve have also published several books, including Collective Entrepreneurship, The Ten Golden Rules, WOM and Buzz Marketing, Business Strategy in a Semiglobal Economy, China’s Challenge: Imitation or Innovation in International Business, and New Emerging Japanese Economy: Opportunity and Strategy for World Business. I’ve traveled extensively throughout the world giving lectures and seminars for private and government organizations, including Beijing Academy of Social Science, Nagoya University, Tokyo Science University, Keimung University, University of Adelaide, Saint Gallen University, Duisburg University, University of Edinburgh, and Athens University of Economics and Business. Interests: Global markets, business, investment strategy, personal success.

Wall Street is thriving. The Dow Jones Industrials and the S&P 500 are reaching one new high after another. Nasdaq is racing towards its old high. But two popular stocks–StarbucksStarbucks and Whole Foods — are lagging behind both the S&P 500 and the Nasdaq indexes. In particular, Whole Foods MarketWhole Foods Market (NASDAQ:WFM) has been headed south, following a string of disappointing quarterly results.

The trouble is, however, that stockholder-friendly moves like dividend hikes and stock buybacks do not bring back momentum. They don’t have a lasting effect on equity prices and investors. Cisco Systems has been pursuing both strategies for many years, but the stock continues to trade well below its early 2000s highs.

What could re-ignite momentum, however, is sales and earnings growth. But both companies face serious challenges that may constrain future growth.

Starbucks’ growth is challenged by upstarts that copy and replicate its model, forcing the company to cut rather than raise prices. That has been the case in Greece where Starbucks is facing strong competition by upstart Mikel, as discussed in a previous piece.

Whole Foods’s growth is challenged by two factors. First, competition from other supermarket chains and specialty stores which rush to re-plicate its organic grocery model. Second, the company is running out of high income locations to open stores, and may be forced to close rather than open new stores, as discussed in a previous piece.

The bottom line: Starbucks and Whole Foods are great companies, both for consumers and investors. But they have to pause, count their blessings and go back to the basics of business strategy ie, choose the products and the markets that could re-ignite momentum for their brand, and interest among investors.

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